If neither the borrower nor the cosigner have the money to pay back the loan, than bankruptcy is always an option for the cosigner. If you don't have the money, you don't have the money. However, be prepared to lose a good deal of your possessions and absolutely destroy your credit!
They CAN file BK, but school loans (if they are federally backed) are not dischargeable, so even after the BK, the school loan would still be owing. So if the debtor wants to file BK purely due to school loans, then there would probably be no benefit in filing>
I say non dischargeable but in reality it IS possible, but those cases always involve people that have been disabled to the point that they would never be able to resume a normal life (i.e. paralyzed, brain damage, vegatative state, etc...). Trying to discharge school loans merely because you are unemployed or underemployed will not work.
bankruptcies do not wipe out student loans by federal law, unless you can prove extreme inablilty to repay them
No one gets out of repaying a student loan by declaring BK unless they go through a special undue hardship petition. This includes cosigners.
Yes, it could be. You could reaffirm that particular debt, which means you don't wish to include it in your bankruptcy and that you will continue to make your normal payments.
Of course.
Gov't backed student loans are exempt from BKruptcy....they will come after you thru tax refunds or garnishment.
The loan would be part of the bankruptcy filing. I can't see how the death of the cosigner is significant. (In financial terms, that is.)
No, the primary signer is still liable. But if a loan is not dischargeable, such as a student loan (actually is is extremely hard to discharge), both the primary and co-signer will STILL be liable after the bankruptcy
Student loan bankruptcy happens when a student has not been a student for the last 7 years and declares bankruptcy. For more information please contact a student loan office.
a secured loan
They can still come after the cosigner, and it will still reflect poorly on your cosigner's credit history. You have been absolved of the debt, not your cosigner.
As a cosigner, you are not at all protected if the primary signer files for bankruptcy. In many cases, filing for bankruptcy relieves the primary signer on the loan from his obligations towards the loan, at which point the lender will turn to the cosigner for payment. You'll either have to pay the loan or file for your own bankruptcy (if necessary).Unfortunately, you're stuck with the loan regardless of whether or not the primary signer successfully completes his bankruptcy filling. You may want to contact a bankruptcy lawyer for some additional advice or assistance.
The cosigner I believe but check with the loan issuers it's in the details.
AnswerThe short answer is no, you can never change cosigner on a private student loan. If they die, however, it is transferred to you.
It is very possible to get a student loan with no cosigner and only 1 year of employment. The best solution would be to apply for a federal stafford loan.
The creditor will seek repayment of the car loan from the cosigner. As long as the cosigner pays, their credit will not be affected. However, if they are unable or unwilling to pay, the debt will be pursued like any other bad debt, and it will affect their credit rating.
If you default on your loan, the cosigner is stuck with paying it off. If your credit had been any good in the first place, you would not have needed a cosigner.